France's SMCP sees inflation, demand slowdown still weighing in first half
28/02/2024 16:46
Feb 28 (Reuters) - French fashion group SMCP SMCP.PA
said on Wednesday its annual earnings and net income had
suffered from the inflationary environment and a slowdown in
demand, trends it expects to continue in the first half of 2024.
The owner of labels such as Sandro and Maje said annual
earnings before interest, taxes, depreciation and amortisation
fell 11.3% to 236.4 million euros in 2023, even as sales edged
up 2.1% to 1.23 billion euros. Net income fell 78.2% to 11.2
million euros.
Sales in the Asia-Pacific region, which represent around
one-fifth of the total, rose 12.5% on an organic basis but at
the French business, accounting for around a third of sales,
they fell 6.7% as demand slowed.
"Given the lack of visibility on the timing of the
turnaround in consumer demand, the Group will not provide
financial guidance for 2024," it said.
For the final three months of 2023, total sales dropped 1%
on organic basis.
(Reporting by Gaëlle Sheehan)
((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))